Financial Superintendence of a South American country is preparing regulations for crypto transactions
The Colombian Financial Superintendence, the country's securities and financial watchdog, is working on a document to govern cryptocurrency transactions and activities in the country. The agency said it will release the document in the coming weeks, which will establish guidelines for the management of these assets in the Colombian financial system.
Governments in Latin America are finally taking cryptocurrency legislation seriously, as adoption in their nations begins to approach critical levels. Colombia's Financial Superintendence, which is in charge of overseeing the country's financial system, is working on a set of rules that will apply to the usage of cryptocurrency in the country.
Jorge Castao, the organization's president, made the news at a ceremony in Barranquilla. The document, which must be evaluated before being sanctioned, is already in the hands of Colombia's Central Bank for assessment and input.
This isn't the first time the organization has worked with cryptocurrency. The Financial Superintendence was in charge of a trial program known as "the sandbox," which enabled cryptocurrency exchanges to collaborate with private banks in the nation to make it simpler for people to buy bitcoin with fiat money.
Colombia, which was not previously renowned for being a crypto hub, has been gradually embracing the technology. This has piqued the interest of Latam exchanges like Ripio and Bitso, both of which have lately extended their operations in the nation. Colombia is also one of the Latin American countries with the most crypto ATMs, second only to El Salvador, which has a number of Chivo ATMs powering its national wallet infrastructure.
This is why regulators are working on a cryptocurrency bill to provide order to the country's cryptocurrency economy. The first measure to govern the conduct of cryptocurrency exchanges in the country was passed in its first hearing this month, with authorities hailing it as a tool to combat typical frauds and Ponzi schemes. The relationship between the new norms and how they will interact with the regulation is unknown.